Loan Guarantee Liability
Definition
This account is used to record the expected present value amount of cash flows to and from the U.S. Federal Government from loan guarantees. This account is the financing fund for loan guarantee programs. Record all transactions that affect the subsidy for loan guarantees in this account. The initial transaction transfers the subsidy monies from the program fund to the financing fund. Although the normal balance for this account is credit, it is acceptable in certain instances for this account to have a debit balance. This account does not close at year-end.
Year-end: This account does not close at year-end.
Source: Section II ·
p1sec2-acctdef-2026.pdf
Required attributes & legal values
8For each attribute this account reports, these are the only domain values GTAS will accept for this account (Section IV).
Transactions
17Debit · Proprietary entry B417 To record in a loan guarantee financing account an accrued expense to a third party, in which no asset is received. This transaction includes payments of incurred default claims, interest supplements, and other loan guarantee financing claims.
Debit · Proprietary entry C103 To record the collection of subsidy costs in the financing account.
Credit · Proprietary entry C117 To record in the financing fund fees collected when loans are disbursed.
Credit · Proprietary entry C118 To record in the financing fund fees earned when loans are disbursed.
Credit · Proprietary entry C412 To record accrued receivables for modified direct or guaranteed loans moving from the liquidating fund to the financing fund account.
Credit · Proprietary entry C413 To record the collection in the financing account for items related to modified direct or guaranteed loans originating in the liquidating fund.
Credit · Proprietary entry C427 To record loans receivable to be collected from a non-federal source by another federal entity and transferred to the recipient entity as a custodial collection. Do not consider a budgetary resource until transferred from the collecting entity.
Credit · Proprietary entry C428 To record loans, interest, and fees receivable from non-federal sources for defaulted guaranteed loans and loan guarantee activity. Do not consider as a budgetary resource until collected.
Credit · Proprietary entry C438 To record subsidy receivable and the related interest, in the financing account, for an upward reestimate.
Credit · Proprietary entry D147 To adjust the loan guarantee liability and direct loan allowance for downward reestimate of subsidy expense in the financing account.
Debit · Proprietary entry D308 To record a prior-period adjustment that reduces the value of a liability.
Debit · Proprietary entry D312 To record a prior-period adjustment that increases the value of a prior-year liability.
Credit · Proprietary entry D580 To record the interest accruals on loan guarantee liabilities and the present value of loans.
Credit · Proprietary entry E122 To record accrued and compounded interest on the liability of loan guarantees.
Credit · Proprietary entry E514 To record the transfer-out of accounts payable and other liabilities to other federal entities without reimbursement.
Debit · Proprietary entry E610 To record the transfer-in of accounts payable and other liabilities from others without reimbursement.
Credit · Proprietary entry